Peter Bain Forex Trading Commentary for Thursday March 16, 2006
Forexmentor.com Price Currency Trading Action
The USD/CHF and AUD/USD pairs continue to occupy my attention, because they're so easy to relate to - given the commercial sentiment (extremely long both the Aussie and the Swissy). Why make it difficult on yourself? Go with the flow! The USD/CHF pair is in a downtrend, and the AUD/USD pair is in an uptrend. Who could have guessed?Magic folks! When you know the overall tone to the market, then you want to be on the right side of the fence - selling the rallies in a downtrend, in the case of the USD/CHF pair, and buying the dips in an uptrend, in the case of the AUD/USD pair. From a day trading perspective, the USD/CHF pair is in a downtrend, offering up some great opps. to short the rallies in the downtrend (witness the London open, as just one example). Also, it tanked at news time. That's not to say you can't avail yourself of counter-trend moves, as in what happened at the NY close yesterday - so long as you know what's happening in the grander scheme of things.
See today's chart at: http://www.forexmentor.com/campaign/mar1606.html
See sample AM Review at: http://www.forexmentor.com/sampler/
Forexmentor.com Froex Trading News
U.S. retail sales for February came in softer than expected, thus easing interest rate worries. A report by an influential consulting group further suggested that U.S. interest rate increases are nearing an end. This is all greenback-negative, but good for the other currencies paired to it.
The Canadian dollar is one beneficiary, and it is also being helped along by higher energy prices.Gasoline prices have everybody aghast, as they are at a five-month high. Supplies are falling, as refineries shut down their facilities for regular maintenance.
The USD/CHF and AUD/USD pairs continue to occupy my attention, because they're so easy to relate to - given the commercial sentiment (extremely long both the Aussie and the Swissy). Why make it difficult on yourself? Go with the flow! The USD/CHF pair is in a downtrend, and the AUD/USD pair is in an uptrend. Who could have guessed?Magic folks! When you know the overall tone to the market, then you want to be on the right side of the fence - selling the rallies in a downtrend, in the case of the USD/CHF pair, and buying the dips in an uptrend, in the case of the AUD/USD pair. From a day trading perspective, the USD/CHF pair is in a downtrend, offering up some great opps. to short the rallies in the downtrend (witness the London open, as just one example). Also, it tanked at news time. That's not to say you can't avail yourself of counter-trend moves, as in what happened at the NY close yesterday - so long as you know what's happening in the grander scheme of things.
See today's chart at: http://www.forexmentor.com/campaign/mar1606.html
See sample AM Review at: http://www.forexmentor.com/sampler/
Forexmentor.com Froex Trading News
U.S. retail sales for February came in softer than expected, thus easing interest rate worries. A report by an influential consulting group further suggested that U.S. interest rate increases are nearing an end. This is all greenback-negative, but good for the other currencies paired to it.
The Canadian dollar is one beneficiary, and it is also being helped along by higher energy prices.Gasoline prices have everybody aghast, as they are at a five-month high. Supplies are falling, as refineries shut down their facilities for regular maintenance.
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